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Greenspan Warns of More Weakness
But Is Upbeat on Long-Term Outlook

By

Greg Ip Staff Reporter of The Wall Street Journal

Updated Oct. 18, 2001 9:33 a.m. ET

WASHINGTON -- The U.S. economy has recovered only part of the drop it experienced following the Sept. 11 terrorist attacks and remains at risk of further weakness, Federal Reserve Chairman Alan Greenspan said.

In testimony to Congress Wednesday, Mr. Greenspan made it clear that the attacks were a sharp setback, but that he remains optimistic about the potential for information technology to keep the U.S. economy growing faster than it did from the mid-1970s through the mid-1990s. His comments left intact investors'...